Assessing the influence of supply chain collaboration value innovation, market demand, and competitive advantage on improving the performance of ceramic SMEs

MSMEs in the ceramics industry are still experiencing a difficult period even though they have entered the post-pandemic period. Will competitive advantage be created from supply chain collaboration in terms of obtaining resource information which will ultimately create innovation and increase market demand? This research involved 200 ceramic MSMEs in Bali with the condition that the perpetrators had been running their business for more than one year, analyzed with SEM-PLS with the SmartPls processing tool. The results show that the relationship between market demands has a positive effect on competitive advantage and will give a boost to the performance of ceramics SMEs. While the collaborative relationship of innovation value does not have a positive effect on performance and competitive advantage because so far ceramic SMEs, especially photocatalysts, are still relatively new and are still running their business in one small group and no organization has yet been formed to support the acquisition of information related to the innovations to be carried out. This research also shows that the mediation of competitive advantage is the perfect mediation in creating market demand in improving the performance of MSMEs.